Thailand ready to graduate from bailout program: IMF

Thailand ready to graduate from bailout program: IMF

BANGKOK (AFP): The International Monetary Fund (IMF) said on
Tuesday that Thailand would graduate from its US$17.2 billion
support program in June, but warned the nascent recovery remains
fragile.

The IMF said Thailand would be the first of the Asian
countries to exit its program and praised its commitment to
reform following its plunge into crisis in mid-1997, dragging
much of the region in tow.

"It is far away from the crisis, the economy is recovering and
the balance of payments is strong," visiting IMF division chief
for Thailand Ranjit Taja told AFP in an interview.

"Thailand is ready to graduate from the IMF program."

His comments come at the end of the IMF's latest review of the
Thai economy, in which the IMF said the economy grew 4.2 percent
in 1999 and forecast five percent growth this year after a
miserable double digit contraction in 1998.

"Thailand began the crisis with a much bigger problem than the
others, and if you take that into account they have done very
well," Taja said.

However he said that it was difficult to compare Thailand with
other recipients of IMF bailouts, namely Indonesia and South
Korea.

"I would rather avoid a beauty contest," he said.

IMF officials met with Finance Minister Tarrin Nimmanahaeminda
and senior officials Monday to inform them that Thailand would
exit the 34-month IMF program as scheduled at the end of June,
Taja said.

The announcement comes as Thailand prepares to host a major
United Nations-sponsored international trade conference starting
this weekend which is being used as a chance to spotlight the
success of reforms.

Among those attending is International Monetary Fund managing
director Michel Camdessus.

As evidence mounted of economic recovery, Thailand last year
stopped drawing funds from the IMF and bilateral donors, which
were granted after the baht currency went into free-fall in mid-
1997.

In all, Thailand withdrew some US$14.1 billion from its
bailout package, according to the IMF.

The Bank of Thailand reported as of January 21 that Bangkok
had restored official foreign reserves of $33.7 billion,
equivalent to 10 months of imports after they were almost
completely depleted during futile efforts to prop up the
currency.

Under the IMF package, Thailand was required to follow strict
conditions on managing its economy, including a sweeping reform
program.

Interest rates and inflation are low -- running at about one
percent -- and the baht has been stable in a range of around 37
units to the dollar for months.